The Central Bank’s economic activity index (IBC-Br) rose by 0.25 percent in May, falling short of market expectations and marking the second consecutive month of underwhelming results. The index has grown 1.66 percent in the past 12 months, down from 1.81 percent in April.
Comprising various measures, the IBC-Br is a reliable indicator for GDP trends. According to the latest Focus Report, analysts predict a 2.11 percent GDP growth for 2024, a slight increase from the previous week’s forecast.
Despite inflation concerns and a challenging fiscal outlook, Brazil’s GDP expanded by 0.8 percent in Q1 2024, with expectations of a continued growth trend in Q2, albeit impacted by recent floods in Rio Grande do Sul.
Itaú, the largest private bank in Brazil, forecasts a 0.6 percent GDP growth for Q2, highlighting resilient economic activity, especially in consumer goods consumption and stable performance in the services sector.
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